Interest on savings

poundnotes_2

I deposited some money with the Post Office last year when the interest rates for Instant Saver Accounts were about 5.7%. I know that rates have dropped, so does this mean that I no longer get 5.7% interest on my savings.

freddysmith

Down to 2.25% Gross Now

http://www.postoffice.co.uk/portal/po/jump1?catId=19300232&mediaId=23200510

withnell

poundnotes wrote: »

I deposited some money with the Post Office last year when the interest rates for Instant Saver Accounts were about 5.7%. I know that rates have dropped, so does this mean that I no longer get 5.7% interest on my savings.

Yes, the rates are now lower as posted above, because the account has a variable interest rate.

As a rule of thumb, only fixed term/limited withdrawal accounts tend to have fixed interest rates.

poundnotes_2

Does the interest rate of about 6% to be paid at a end of a 3 year period on a post office growth bond (taken out last year) now decrease?

withnell

Have a look at the documentation that came with the account - if it says "fixed" then it won't change. Post back on here what it says if it's not clear

poundnotes_2

Thanks

It says a fixed term and a fixed rate.

Robert_Sterling_3

Good 4 U. :T :j :T

liebe911

rates will change with the market conditions.

nzseries1

Please ignore post #8 from liebe911, he is a spammer and has been reported.

Bert5_2

The cheque I received when I closed my bond early because the PO had changed the saving conditions ie no longer covered by the FSA, was for the wrong amount. The covering letter did not give the account dates, which I found strange and alerted me. Did calculation myself and had been short changed. No joy by telephone so wrote letter with calculation. PO now admits it got it wrong and will pay up.

If this is commonplace then it gives an added source of income for the PO if not challenged. I encourage you to check your cheque on closure.

Milarky

Bert5 wrote: »

If this is commonplace then it gives an added source of income for the PO if not challenged. I encourage you to check your cheque on closure.

How far out was their calculation as it happens? (If you don't want to state monetary amounts then just express as a percentage error instead. Most interest checks I do are probably in agreement with the banks' to within 1 in a 1000, I find)